A new report from Bloomberg states Apple is planning on launching a streaming online radio service sometime in early 2013.

According to the report (Bloomberg has an 87% accuracy rating on Tracour), which cites anonymous sources close to the deal, Apple is still negotiating with record labels to get the deal done for a launch early next year. That deal could be completed as early as next month; the negotiations primarily relate to how ad revenue from the proposed service will be shared. The report states the service will be similar in nature to Pandora Internet Radio.

The report also claims the new service would be released through an app – possibly through the company's iTunes app. According to Bloomberg's sources, the service would not be made available through a website.

News of the proposed service comes shortly after Microsoft launched its streaming music service, Xbox Music. That service launched three days ago for Windows 8 users, and slightly before then for Xbox 360 users. Xbox Music is primarily a rebranding of Microsoft's former Zune Pass service, although Xbox Music allows free streaming with ads on Windows 8 and Windows RT devices.

A major difference between that service and what Apple's streaming service is rumored to be, however, is that Xbox Music allows users to select the songs, albums and artists they want to stream instead of listening to the online equivalent of a radio station.